Huw Evans, director general of the Association of British Insurers, is expected to suggest at a dinner on Monday evening that "as a last resort" Brexit should be subject to a short delay if no deal is the only alternative.

Mr Evans will say that any future arrangement with the EU that required the UK to comply with rules over which it had no say could be "weaponised by those in the EU that want to… damage the UK".

On Sunday, Mrs May announced that MPs will be able to have a fresh vote on the Brexit deal by 12 March, prompting expressions of dismay by several business groups.

CBI deputy director general Josh Hardie described it as "the latest signal to businesses that no-deal is hurtling closer".

"It must be averted. Every day without a deal means less investment and fewer jobs created," he said.

British Chambers of Commerce director general Dr Adam Marshall said: "Delaying the vote until just two weeks before the UK's planned departure from the EU raises serious concerns about the timeline of the parliamentary process, and whether there is sufficient window to reach an agreement and pass the necessary legislation to avoid a no-deal exit."

And the Institute of Directors' interim director general, Edwin Morgan, said: "There is too much at stake to run down the clock and risk an accidental no-deal. We sincerely hope this is the last and final date change."

He added: "Businesses have lost all faith in the political process and as those first in the firing line of no-deal, they deserve to know more."